McD's pecks up Boston Market

Published on December 02, 1999.

McDonald's Corp., Oak Brook, Ill., is adding another brand to its arsenal: Boston Chicken's ailing Boston Market chain. The burger giant announced today it plans to acquire most of the assets of the 751-unit chicken chain for $173.5 million in cash and debt, along with development rights for 108 more units. The once high-flying chain has been operating under Chapter 11 bankruptcy protection since last year. McDonald's said it will use some of the sites to grow its own brand plus two other chains it recently acquired: Donatos Pizza, Columbus, Ohio, and Chipotle Mexican Grill, Denver. Some of the restaurants of the Golden, Colo.-based chicken chain will continue as Boston Markets, and no layoffs are expected. Suissa Miller, Los Angeles, handles creative for Boston Market's estimated $50 million account. It's unclear whether Larry Zwain, McDonald's senior VP-marketing, was involved in the deal. Mr. Zwain is a former president of Boston Market.